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Re:Ask HN: Paychecks from a failed startup? by elefanten on Tuesday May 02, 2023 @04:33PM (#35793777)
They absolutely shouldn’t “take the loss on this one”, what kind of an asinine comment is that?

OP performed labor at an agreed-upon rate. The hypothetical broke and failed founder should “take the loss”, even if it requires taking on further financial burdens.

Externalized risk is one of the most rampant and harmful moral hazards of this age.

Re:Ask HN: Paychecks from a failed startup? by DiggyJohnson on Tuesday May 02, 2023 @04:38PM (#35793850)
The tone of this comment is completely out of line. We probably disagree on many things, yet your comment makes sense to me. So does the comment you're replying to.

It's not clear it's asinine: the cost of trying to recoup money from an entity that is completely out of money can very easily become not worth it.

Re:Ask HN: Paychecks from a failed startup? by elefanten on Tuesday May 02, 2023 @04:51PM (#35794015)
The comment I replied to said OP should take the loss if they think the failure is “in good faith”. This implies that OP should give up what they’re owed to take pity on the failed business’ owners.

That would be giving the owners a pass on the risk that should be inherent in starting a business venture at the expense of OP’s already-delivered labor.

I stand by my tone. That kind of risk shuffling is cancer to the whole realm of private ventures and contributes to general distrust of business as a means of organizing and motivating collective human action.

Re:Ask HN: Paychecks from a failed startup? by yamtaddle on Tuesday May 02, 2023 @05:32PM (#35794512)
You're entirely in the right, good faith's got shit to do with it, this is business. We can revisit this when every single halfway-powerful actor in the economy wouldn't send a busful of children off a cliff to make a buck, if they thought they could get away with it. When banks just let people keep their houses they're not paying on because "LOL, good faith!"

Anyone else the company owes money going out of their way to make sure those ahead of them in line get theirs first, especially the workers? LOL no, of course not. So why should a worker?

Re:Ask HN: Paychecks from a failed startup? by maerF0x0 on Tuesday May 02, 2023 @05:08PM (#35794225)
One thing to consider is that Startups, Tech, the bay area, and life in general is a very small world. You'd be surprised how some good faith spread around becomes a nepotistic interview invite a few years later.
Re:Ask HN: Paychecks from a failed startup? by true_religion on Tuesday May 02, 2023 @05:18PM (#35794349)
Regardless the founders should pay their employees. As a founder, I would never feel good about not paying staff. Taking care of “your people” has to be a primary responsibility or else you are spitting on their loyalty and sacrifice.

However the extent to which they should take this case is pretty wide.

At least the guy should ask for his wages.

Maybe he should insist on them if he needs it.

Should they sue the founders and get an lien on their houses? I don’t know.

The first two shouldn’t remove good faith or good feeling. The third means bridges burned.

Re:Ask HN: Paychecks from a failed startup? by DiggyJohnson on Tuesday May 02, 2023 @08:13PM (#35796054)
Presumably the founders that cannot pay their employees in this “good faith hypothetical” do not feel good at all about not being able to pay out. I would imagine they feel defeated and embarrassed.
Re:Ask HN: Paychecks from a failed startup? by elefanten on Tuesday May 09, 2023 @02:48AM (#35870959)
In retrospect, you were correct my tone and rhetoric were out of line. I think siblings to my original comment (written by cogitoergofutuo and itsthecourrier) did a better job by more directly problematizing the "good faith hypothetical" itself. Mismanaging your way to missing payroll twice with no satisfactory communication about it and no promises to make it up is hard to classify as "good faith", even if bad luck was involved.

But I also concede that, in some cases, the cost of recouping might not be worth it.

Re:Ask HN: Paychecks from a failed startup? by paulajohnson on Tuesday May 02, 2023 @04:36PM (#35793834)
I think the parent comment is about the likelihood of recovering enough money to make the exercise worthwhile, rather than the propriety of getting ripped off.
Re:Ask HN: Paychecks from a failed startup? by gred on Tuesday May 02, 2023 @05:13PM (#35794300)
For what it's worth, I "took the loss" in a similar situation. The owner put everything he had into the business, it legitimately failed, and I didn't want to kick him while he was down. My financial situation was such that it didn't hurt me too badly. I could imagine pushing harder if the situation had been different, either on my end or on his.
Re:Ask HN: Paychecks from a failed startup? by dang on Friday May 05, 2023 @01:38AM (#35825571)
Hey, can you please make your substantive points without name-calling or otherwise breaking the site guidelines?

https://news.ycombinator.com/newsguidelines.html

Re:Ask HN: Paychecks from a failed startup? by elefanten on Monday May 08, 2023 @10:51PM (#35869672)
Ok, fair enough. Sorry.
Re:Ask HN: Paychecks from a failed startup? by dang on Tuesday May 09, 2023 @12:39AM (#35870220)
Appreciated!